Book Description
The Only Three Questions That Count is the first book to show you how to think about investing for yourself and develop innovative ways to understand and profit from the markets. The only way to consistently beat the markets is by knowing something others don’t know. This book will show you how to do just that by using three simple questions. You’ll see why CNBC’s Mad Money host and money manager James J. Cramer says, "I believe that reading his book may be the single best thing you could do this year to make yourself a better investor.
In The Only Three Questions That Count, Ken Fisher challenges the conventional wisdoms of investing, overturns glib theories with hard facts, and blows up complacent beliefs about money and the markets. Ultimately, he says, the key to successful investing is daring to challenge yourself and whatever you believe to be true. Packed with more than 100 visuals, usable tools, and a glossary, The Only Three Questions That Count is an entertaining and educational experience in the markets unlike any other, giving you an opportunity to reap the huge rewards that only the markets can offer.
Customer Reviews:
Great book, one of the best I've read in a while .......2007-09-03
I consider myself fairly well read when it comes to investing, but I was really suprised by this book.
I've poured through books by and about Warren Buffett, Charlie Munger, Jim Rogers, some of the new classics (Market Wizards by Schwager) and some of the old classics that never go out of style (Reminiscences of a Stock Operator, Money Game). I was actually just browsing through my local bookstore when I saw this.
Fisher's well known for his advertising. His ads though, and his style turned me off (somewhat analogous to a doctor that advertises on a bus stop or a lawyer advertising in the back of a phone book, you just don't quit trust it).
He's got some real gems in here though. The book could have been about 150 pages shorter, but the essence of it, that the only way to beat the market is to know something that others don't, is spot on.
If you answer his 3 questions before investing (especially #3, what is your brain doing to mess you up), you'll be well ahead of the game.
It's amazing that people will invest huge sums of money in the market, and not even know what the biases are that cause misjudgement. Fisher does a beautiful job of reducing things down to "primitive man", and what was great for hunter gatherers 50,000 years ago hunting lions is terrible for your portfolio.
Still, I think the book falls into some traps that most other investment books fall into:
-Some of it is too neat, too ivory tower, too clean and mathematical. There's no people in the book, there are no memories.
For example, he thinks stocks have no correlation to past results. The odds of a stock moving tomorrow up or down are 50-50.
But investors have memories. Investors got scarred for life after the '29 crash, they never felt the same way about stocks again. I don't think stocks have a 50-50 chance of moving up or down after that. It also doesn't take into account where companies are in their life cycle. It doesn't take into account competitive advantage (or lack thereof).
-A direct quote from the book..."Since 1926, there have been 66 15 year rolling time periods. In 61 of them (92%), stocks beat bonds, returning an average of 481% while bonds returned 150%"
He then adds to the arguement, and basically says stocks always outperform bonds, buy stocks. But most people get into stocks at the wrong time! There's no mention of valuation, there's no mention that people buy stocks when everyone else is buying them.
People can and do lose money...if you bought stocks in the mid 20's or later, you didn't break even for 20 years. If you bought stocks during the raging bull market of the 60's and held, you got killed. The DOW was at 700 in the early 60's and 800 in the early 80's, after some grueling declines. Business Week ran their famous (infamous) cover in 1979, "The Death of Equities". People were putting their retirement money into gold and diamonds back then.
People do not buy stocks equally during all time periods. There's some other arguements made that can be a little dangerous. Some of the arguement made about the deficit, the declining dollar, I don't know.
Fisher is obviously brilliant, he's on the Forbes 400, but no one should be above questioning or critical thinking. Absolutely come to your own conclusions. I don't think some of the arguements will hold up in 15-20 years.
But still, it's well worth adding to your library. Some of the key chapters should be re-read many times to get all the nuances.
No real help here!.......2007-09-03
Fisher describes a number of interesting stock market fallacies and why they should be ignored in any serious investing plan, and also illustrates some common emotional problems that plague a large percentage of investors. He describes several admittedly outdated fundamental indicators which, although possibly of some academic interest, are no longer useful, as they now have been discounted by the market.
He suggests that the individual investor select an index and track his or her performance with respect to this index, presumably taking advantage of knowing what most other investors do not. Most unfortunately, the methodology of attaining this precious knowledge is not made clear, at least to me. If an investor knows important details about equity issues that are not generally known, then he or she has no need of this book!
The writing style of Fisher, while occasionally entertaining, contains a good deal of self-serving statements, and, as commented by others, the basic information could be provided by perhaps one quarter the number of pages.
very informative.......2007-08-28
I've read a lot of finance books in my day but this one takes a whole other approach. Instead of the same old conventional methods of analyzing the stock market through ratios and fundamentals, this book takes you through how to look at the market differently. The Only Three Questions shows you the power of sentiment on the market and specifically how to gauge investor sentiment and use it to your advantage. While the book is full of data and graphs, it also is a surprisingly humorous and enjoyable read. If you're looking for a completely different investment strategy, this book is for you.
Needed an editor.......2007-08-26
A well constructed book cries out for discipline, particularly one dealing with investment. There is little discipline here, and this may stem from the way it was written. It reads in a disjointed, jaunty, disconnected way, very much as if dictated while working out on treadmill. Also hard to say what role the other two writers had in the making of the book.Aside from being far too long for the wisdom the book imparts, and it does provide some interesting insights, there are some rather questionable conclusions that other reviewers have pointed out, such as the irrelevance, presumably, of US debt, of debt in general. He makes light of other methods of selecting stocks, such as (his own) discovery of the importance of the price to sales ratio. His advice is, on the whole, fairly vague. One gets out of the market when one knows more than others.... Right. But the tables and graphs are well worth perusing, more than once. On that basis I reconsider and would recommend the book to those who have a fair amount of investing experience. Not for beginners!
Think before you act.......2007-08-23
Managing money is not my strong suit. Because I don't have any in the first place. This may explain why I am right now so "house-rich and cash-poor". I therefore bought this book out of sheer curiosity. How do "big predators" behave? How do they reach their ultimate goal: BEATING THE MARKET ?
M. Ken Fisher gives us a clear, perfectly documented answer ( think before you act), thereby debunking some hard-dying myths like the "gold haven". M. Fisher's book is crystal clear, strongly worded, often very funny and on the whole totally convincing. I simply love the visuals. I recommend without reservation this book to any investor trying like me to avoid a further decline of his (hardly worth mentioning) savings.
Even with Mr. Fisher's invaluable assistance, I will probably never beat the market. But I might want to take advantage of his most interesting tips: watch for prospective buy-outs !
Book Description
How do we find hot stocks without getting burned? How do we fatten our portfolios and stay financially healthy? Former hedge-fund manager and longtime Wall Street commentator Jim Cramer explains how to invest wisely in chaotic times, and he does so in plain English in a style that is as much fun as investing is -- or should be, when it's done right.
For starters, Cramer recommends devoting a portion of your assets to speculation. Everyone wants to find the big winners that can bring outsized gains, and Cramer explains how to allocate your portfolio so that you can afford to take this kind of risk wisely. He explains why "buy and hold" is a losing philosophy: For Cramer, it's "buy and homework." If you can't spend an hour a week researching each of your stocks, then you should hand off your portfolio to a mutual fund -- and Cramer identifies the very few mutual funds that he'd recommend.
Cramer reveals his Ten Commandments of Trading (Commandment #5: Tips are for waiters). He explains why he's not afraid to compare investing to gambling (and tells you which book on gambling you should read to become a better investor). He discloses his Twenty-Five Rules of Investing (Rule #4: Look for broken stocks, not broken companies).
Cramer shows how to compare stock prices in a way that you can understand, how to spot market tops and bottoms, how to know when to sell, how to rotate among cyclical stocks to catch the big moves, and much more. Jim Cramer's Real Money is filled with insider advice that really works, information that Cramer himself used to make millions during his fourteen-year career on Wall Street.
Written in Cramer's distinctive turbocharged style, this is every investor's guide to what you really must know to make big money in the stock market.
Download Description
"How do we find hot stocks without getting burned? How do we fatten our portfolios and stay financially healthy? Former hedge-fund manager and longtime Wall Street commentator Jim Cramer explains how to invest wisely in chaotic times, and he does so in plain English in a style that is as much fun as investing is -- or should be, when it's done right. For starters, Cramer recommends devoting a portion of your assets to speculation. Everyone wants to find the big winners that can bring outsized gains, and Cramer explains how to allocate your portfolio so that you can afford to take this kind of risk wisely. He explains why ""buy and hold"" is a losing philosophy: For Cramer, it's ""buy and homework."" If you can't spend an hour a week researching each of your stocks, then you should hand off your portfolio to a mutual fund -- and Cramer identifies the very few mutual funds that he'd recommend. Cramer reveals his Ten Commandments of Trading (Commandment #5: Tips are for waiters). He explains why he's not afraid to compare investing to gambling (and tells you which book on gambling you should read to become a better investor). He discloses his Twenty-Five Rules of Investing (Rule #4: Look for broken stocks, not broken companies). Cramer shows how to compare stock prices in a way that you can understand, how to spot market tops and bottoms, how to know when to sell, how to rotate among cyclical stocks to catch the big moves, and much more. Jim Cramer's Real Money is filled with insider advice that really works, information that Cramer himself used to make millions during his fourteen-year career on Wall Street. Written in Cramer's distinctive turbocharged style, this is every investor's guide to what you really must know to make big money in the stock market. "
Customer Reviews:
Great book for learning about trading stocks.......2007-10-02
Jim Cramer's book is full of usefull and sound advice about investing in stocks. All his rules make common sense and should be easy for anyone to apply in thier own investing. Discipline is the key, and he stresses that. He didn't become a multi-millionaire and get his own show on CNBC by being a dummy. No one can be right all the time, and Cramer is no exception, but he is right much more than he is wrong. And that is all you need to make alot of money on Wall Street. Dont listen to the Cramer haters out there, THEY KNOW NOTHING!!! and will never come close to duplicating Cramer's investing success.
Great Book for any Investor........2007-10-01
I am just starting to dabble in the stock market so I'm trying to learn as much as I can right now.
This book is very easy to understand and a very fast read. Being a really big fan of Cramer already this was a 'no-brainer', and although he is very educated he really translates his thoughts and advice in an easy to understand way.
I strongly recommend this book for anyone who is interested in the stock market.
Mad Man? Not really, more a Market Genius.......2007-09-29
Not much value on my side reviewing this book for the hundreds time. What's the take away?
I've been investing in stocks for nearly 20 years, with at least so much success that I keep with it, more or less. The difference is now I get why stocks move or don't (at least much more than I did before). And this book (and his show) is key to that. Awesome guiding priciples, rules of thumb, and market insights.
It's a fun book to read, if you have a certain level of interest in the business world, which is kind if key, of course. Many good laughs! I love his style (which I'm sure many might find offensive or so). But heck, it works for me. I bought both his other books as well. It's so good. The return on this "investment" can't be calculated. Hope this helps! :-)
Fundamental investing in a layman's language.......2007-09-23
Booya Jim!! This is a great book about investing using a fundamental approach. What is great is that the basics of investing are explained in a layman's language. You have to read chapter 5 to get a basic 101 on business cycles and how to exploit the cycle in buying and selling stocks.
I can list all the chapters and what they tell you about or list all the rules Jim explains - but that is rote repetition. Read chapter 4 about basics of evaluation. Jim does a wonderful job about comparing apples to apples e.g., Walgreen to RiteAid and goes into depth why he thinks what should be bought. This lesson alone is worth the price of the book for an investor starting out. Another good lesson is to evaluate the current value of a stock.
Of course, you can attend some expensive classes and get uncompreshensible instructions in an university, but for the price of the book, the value of the lessons here cannot be beaten.
In addition to business cycles, Jim gives some great insights e.g., he states that it is stupid to consider investing and trading as a dichotomy. How true! His famous buy-and-homework approach is like hearing a great 101 lesson from a Professor who also knows the real world. I haven't made any money in buying and holding. My emotions eventually have gotten hold of me. Instead, you need to know when to buy and when to sell. There are separate chapters on predicting tops and bottoms of both the market and individual stocks - again, wonderful reads.
In addition there are 40 rules about investing. Some gems are "I don't care what you paid for the stock, would you buy it now?" question to paraphrase. He gives a lot of credit to the Goddess, now his wife!
All in all, a great book and a must-have book in your investing library. I read the book almost two times so that I could reinforce the lessons, especially about valuation and business cycles. My style of investing, which has been pretty successful, is both a combination of fundamental and technical factors, while Jim's is more fundamental. But the fundamental 101s in the book is useful and should be a must background for anyone wanting to put their hard-earned money on the fire in the stock market.
Super Read.......2007-08-26
Awesome Read! I've read a few investment books, but this one is the best! I've been out of the market for a bit, my old way to investing had not produced what I thought it could. Jim has turned me around and retaught what all the professors in college could not. Super fast read, and I could not thank Jim enought for sharing is expertise. I feel like a new and better invester....Homework, Homework, Homework...the Key to succuess.
Five Stars******
Book Description
The million-copy bestseller, revised and updated with new investment strategies for retirement and the most current research into behavioral finance.
Updated with a new chapter that draws on behavioral finance, the field that studies the psychology of investment decisions, here is the best-selling, authoritative, and gimmick-free guide to investing. Burton Malkiel evaluates the full range of investment opportunities, from stocks, bonds, and money markets to real estate investment trusts and insurance, home ownership, and tangible assets such as gold and collectibles. This edition includes new strategies for rearranging your portfolio for retirement, along with the book's classic life-cycle guide to investing, which matches the needs of investors in any age bracket. A Random Walk Down Wall Street long ago established itself as a must-read, the first book to purchase before starting a portfolio. So whether you want to brief yourself on the ways of the market before talking to a broker or follow Malkiel's easy steps to managing your own portfolio, this book remains the best investing guide money can buy.
Customer Reviews:
Quarterlife Finance says, "A Classic that Every Investor Should Read".......2007-10-03
I recently finished reading the 9th edition of Burton Malkiel's classic text A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition. First published in 1973, this book is a classic text that deserves a place on any investor's bookshelf.
Malkiel presents two possible security valuation models - one based on a firm foundation of value and one based on finding a "greater fool" to sell your speculative buys to. He analyzes the history of investment bubbles from the Dutch tulip mania some two hundred years ago all the way through the tech stock bubble of the late 1990s. He discusses fundamental analysis of stocks and thoroughly trashes technical analysis. Finally, Malkiel presents a strategy that virtually guarantees that your investments will keep pace with the market with minimal investment of time.
I enjoyed and recommend this book for several reasons. First and foremost, it blows the whistle on many common "beat the market" strategies, including all manner of technical analysis. As a relatively young investor, I was always intimidated by the chartist strategies (moving averages, buy points, etc) but after reading Malkiel there is no cause for fear. Those strategies simply do not work.
Moreover, I found the book to be an easy read relative to many texts on investment. While he covers different types of stock analysis, modern portfolio theory, the efficient market hypothesis, and asset allocation in detail, the book is not weighted down with too much heavy terminology. His writing style, use of historical anecdotes, and ability to challenge your beliefs again and again keeps you riveted to the book.
Finally, I believe that the strategies presented in the book are clear, concise, and can be employed by anyone to their immense gain. Too many people pay for poor investment advice, make mistakes by chasing gains and paying for active portfolio management, or even pay absurd 12b-1 fees on underperforming mutual fund investments. By reading this book and taking Malkiel's advice to heart, I believe that just about anyone can end up with more dollars in hand.
On the other hand, the book does delve into financial topics that may be intimidating for someone completely new to the investment world. The basic message (buy and hold a well-diversified portfolio of extremely low-cost index funds) could be expressed much more succinctly. However, I wouldn't change a thing with this book...just be prepared for a wild ride that challenges everything you thought you knew about investing.
not a fan........2007-10-03
This book was not what it was trumped up to be, as far as I am concerned. It's a gloomy, negative, pessimistic, unending drivel of known and common sense information and data presented in a much more complicated manner that they are in real life. After reading this book you may be inclined to start taking anti-depressants and definitely stay away from the stock and other securities markets. Weeooogh!!
Excellent Message. Sweeps some exceptions (particularly those noted herein) under the rug........2007-10-02
Particularly in a day and age where mutual funds are often touting themselves on the television, this book has an excellent, largely unbiased message for the average investor: buy low cost index funds and stay in them for the long haul.
The book is exceptionally well written, covering most of the lessons of an introductory to intermediate finance course in a very accessible format (i.e. all the right *ideas* without the confusing math). He utilizes dozens of powerful examples and good data to show that his basic premise, despite now being 30 years old, is sound. Due to its theoretical strength and accessible style, this book could be of particular value to Undergrad Business and MBA students who find the professor's academic approach to an Introductory Finance course confusing. Get the big picture here, making the math just that much easier to follow. (5 stars for making difficult financial concepts readable and interesting)
Despite my strong recommendation for both his message and style, the book does have some drawbacks. Number one is that he has clearly taken a side on the issue and has thrown impartiality to the wind. Regularly, the author depends on "transaction costs" (the cost to trade) to ensure that a trading strategy cannot beat his preferred portfolio (implying that it would have succeeded without the transaction costs). This "sweeps under the rug" several clear counter-examples to the basic efficient market thesis in order to reinforce his index-investment message. While I understand his reasoning for doing so -- a desire not to encourage investment in high cost funds or heaven forbid day trading -- it does lead to some skepticism about his willingness to admit any possibility that his thesis has weaknesses. To that end, I would discourage readers who are familiar with CAPM and efficient-markets from reading the book (2 stars as a brush up).
In the end, however, I think the message is sound. Rather than cite trading costs, I think the message can effectively be said another way: If you spent 5h a day investigating stocks, what are the odds that you can beat a professional manager? If a manager has a staff of 20 that invest 8h per day investigating stocks, what are the odds that they're going to beat the whole financial services industry? If the whole industry is taking advantage of every opportunity to profit from small deviations, and you're going to pay a manager most if not all of that profit anyway, investing in an index basically gets you the benefit of thousands of mutual funds and investment bankers without the cost of any of them (or of your time to do research).
With qualifications to the highly technical reader, who should pass on the book, I can't, in good conscience, fail to give this book 5 stars for a profoundly valuable message targeted at the individual investor.
Best guide ever.......2007-10-02
A good informative writing on the handling of your finances in regards to investing. I found it to be quite basic but I have been investing since a club in the 1960's. It still gave me a lot of information and ideas that I knew a little or nothing on. I would recommend it highly to any and all that wish to have anything in the future for their retirement.
Still the Best.......2007-09-10
I first read this book in its seventh edition. I was great then. I recently purchased the ninth edition as a "refresher." It's still a great book and the one I recommend to prospective clients or other investors prone to believe all of the active management garbage out there. Burton Malkiel does a masterful job of dismantling all of the Wall Street hype and laying out investing in a simple, straight-forward, and long-term approach.
If you read this book and still believe in the Wall Street gurus then you're hopeless. And, you deserve every bit of the bad advice you're following.
Customer Reviews:
The bible for File System Forensics.......2007-08-15
Great Book. Great job Brian. A must have in your bookshelf if you are serious about computer forensics.
It only lacks two things to be perfect: a reiserfs and a HFS+ sections.
Only an error. GPT partition schema isn't used only in big servers. New Intel Macintoshes use it by default for their boot drive.
super.......2007-03-08
Thanks a lot, we are very happy to have this book in our library!
Accept no substitutes -- THE book to read on file systems.......2006-10-10
I decided to read and review three digital forensics books in order to gauge their strengths and weaknesses: "File System Forensic Analysis" (FSFA) by Brian Carrier, "Windows Forensics" (WF) by Chad Steel, and "EnCase Computer Forensics" (ECF) by Steve Bunting and William Wei. All three books contain the word "forensics" in the title, but they are very different. If you want authoritative and deeply technical guidance on understanding file systems, read FSFA. If you want to focus on understanding Windows from an investigator's standpoint, read WA. If you want to know more about EnCase (and are willing to tolerate or ignore information about forensics itself), read ECF.
In the spirit of full disclosure I should mention I am co-author of a forensics book ("Real Digital Forensics") and Brian Carrier cites my book "The Tao of Network Security Monitoring" on p 10. I tried to not let those facts sway my reviews.
FSFA has received lengthy and glowing reviews, so I will keep my comments brief. Of the three books I cited earlier, FSFA was the only one which really grabbed my attention. I am a network-centric security practitioner, but Brian Carrier's organization, thoughtfulness, and delivery really hooked me. I very much appreciate authors who define a framework and explain potentially complicated topics within that framework.
For example, Brian is very keen to promote the scientific method. His emphasis on hypotheses and looking for evidence to refute them made me take a second look at my own practices. Brian differentiates between "essential" and "nonessential" data, where the former must be accurate in order for a user to access data and the latter not necessarily needing to be accurate. Again, this is a great way to think about digital evidence in any form. Investigation is grouped into preservation, search, and event reconstruction phases. Finally, Brian's separation of data structures into five categories (file system, content, metadata, file name, and application) facilitates comparisons of file systems in the third part of FSFA.
Besides being well-organized, FSFA does an excellent job covering material not addressed elsewhere. Server partitions, RAID, and LVM are examples. It is important to understand what is NOT present in FSFA, however. Brian very clearly stops at the application level of data, saving that for other books. I think this is a great idea, since it lets FSFA concentrate on its core topics (file systems) and saves the data on those file systems for other books. At the risk of self-promoting, I think FSFA is a powerful companion to "Real Digital Forensics" (RDF), since we provide sample file system images in dd format suitable for analysis using FSFA techniques. RDF also cares more about content than structure, which is where FSFA stops.
Anyone who even pretends to be a host-centric forensics practitioner must read FSFA. I expect it has the power to save you on the stand should you encounter intense questioning from a defense attorney.
The best work on the topic.......2006-08-29
Carrier's book has proven invaluable to this digital forensics trainee, and I expect many of the old hands in the field will be keeping it on hand as well. If you're serious about computer forensics, you need a copy.
Very deep.......2006-05-24
I'm pretty technical, so I enjoyed this book. The author has more on file systems than just about anywhere, and I found it helpful in non security work also just to understand how the different systems work.
I was able to use the book Windows Forensics, Corporate Computer Investigations by Chad Steel more in daily use, but this book would have been a better as a starting point in learning about disk based analysis and does a much better job of diving deep into file system specifics.
Some of the programming level content was tough to follow, but if you are ever going to court and really need to know your stuff this is buy far the book you need. I recommend it throughly.
Book Description
John J. Murphy has now updated his landmark bestseller Technical Analysis of the Futures Markets, to include all of the financial markets.
"If one could read only one book on technical analysis, this should be the one." --Knight-Ridder Financial Products and News (on the first edition, Technical Analysis of the Futures Markets, 0-13-898008-X)
This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.
"One way to get started in technical analysis is to read a good book on the subject. One of my favorites is Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy. It's an easy read." Ralph J. Acampora, CMT, Managing Director, Prudential Securities Inc.
Customer Reviews:
Reference.......2007-08-13
If you use the charts to look for trades, you have to buy this book. It's an awesome reference for charting.
Good Even for a Random Walker.......2007-07-22
This book is a very well written introduction to the Technical Analysis of the financial markets. It covers a lot of ground and for a text book style layout, it is surprisingly easy to read. Murphy starts with a solid introduction including the philosophy of technical analysis and a defense against the criticisms from academics and followers of the Random Walk Theory. The meat of the book is a comprehensive treatment of the core components of technical analysis including Trendlines, Reversal and Continuation Patterns, Moving Averages, and Oscillators. The author continues to dig deeper with Point & Figure Charts, Japanese Candlesticks, and Eliott Wave Theory.
As a big fan of Malkiel's "Random Walk Down Wall Street," I started reading this book with some healthy skepticism. While I was not converted to the chartist's philosophy, I felt like I did pick up some tools that could still be useful in a buy-and-hold strategy.
Everything a beginner needs to know.......2007-07-07
John Murphy's book explains nearly everything anyone who is looking to understand the technical side of the market could ask for.
PROS: Easy to follow. Starts from the ground up into the complicated stuff. Feels like a year's worth of college courses finished in a few weeks time. This is far and away the best overall stock book I've read to date. I'm making money now!
CONS: Spends a bit too much time on futures trading (for which the book was originally written) Doesn't get far enough into how much time should lapse as a pattern unfolds. Doesn't get much into the psychology of the trader's mind. Somewhat outdated on computer advances (not a big deal)
Classic Technical Analysis Book.......2007-06-28
I received 4 copies of this book during my course work at the NYIF, its an excellent referance manual for anyone applying Technical Analysis to the financial markets.
Excellent introduction to TA - an easy read.......2007-06-27
This is the first book I bought on TA and, honestly, it looked intimidating. It's not. Open it up and it reads cover to cover very quickly. Not too technical - not too basic. Just right. This is an excellent introduction to technical analysis: easy to read language, large print, nice heavy bright white pages. Oh, and the content is excellent as well: worded well, good organization, understandable examples and illustrations.
Book Description
Recently, reorganizations, restructurings, and bankruptcies have replaced IPOs as the common financial vehicle of the times. However, these distressed companies can still provide an avenue for profitable investing. This eagerly anticipated new reference helps guide you through this treacherous landscape in order to master the multi-move chess-like strategies required to achieve financially advantageous results for your portfolio. It is the most up-to-date and comprehensive book on the market to deal with the myriad of issues surrounding a distressed company.
Providing theoretical and practical insight, Distressed Debt Analysis: Strategies for Speculative Investors presents a conceptual, but not overly technical, outline of the financial and bankruptcy law context in which restructurings take place. The book covers the broader financial environment of the reorganization and the basic process of investment analysis and investment strategies. The author uses numerous real-world examples and case studies to emphasize important concepts and critical issues.
The developments that have created these extraordinary investment opportunities have also created tremendous demand for professionals with experience and knowledge in the restructuring process. Distressed Debt Analysis: Strategies for Speculative Investors addresses the complete knowledge needs of investors and professionals in the burgeoning world of financially distressed companies. It is perfect for bankruptcy departments of law firms, restructuring advisory groups, turnaround consulting firms, and reorganization and distressed securities departments of investment banks.
Customer Reviews:
Invaluable.......2007-05-07
Extremely helpful in preparing our new hires - it is required reading. This book will be a desk reference for years to come.
Great & Comprehensive Practical Review.......2007-01-05
Unlike many academic books, this is a practical analysis of distressed debt, the bankruptcy process, and all the related financial, accounting and valuation issues that arise in this context. It is well written and well organized.
Some other books on the topic go into significantly more detail in esoteric issues; however this book is a must for a grounded detailed understanding of the topic. I have recommended this book to a number of colleagues in the industry and all were equally appreciative.
must buy.......2006-03-14
It's a must buy for people in high-yield/distressed analysis. I was suggested this book at my first day at work.
A Complete Introduction .......2005-11-02
The premise of this book is really quite simple.
Identify securities (bonds, stocks or whatever) from companies that are in trouble. Buy these securities when other investors are ignoring or even selling them. Then when the company gets turned around, you can make a fortune. What you don't want to do is buy these securities only to see the companies go out of business so that your securities are now completely worthless.
As you might guess from the title, this book is about how to analyze distressed companies that offer this potential investment path. It covers virtually every aspect of finding such companies, determining if the proposed investment is feasible, explains the differences in the company going through one of the various bankruptcy procedures, the legal and financial due diligence issues, and more. The final result is a set of basic investment strategies and analytical techniques, complete with case studies and referrences to numerous real-world examples to emphasize important concepts and critical issues.
Along with the book is a companion web site that offers additional information, checklists, sample letters, and more.
This book is a complete introduction to this new and emerging field.
Valuable insights, useful commentary, and professionally written........2005-10-22
Like many of us, perhaps you've owned some bonds that have fallen into junk status or worse, distress/bankruptcy. In most cases, did you throw up your arms either selling at a loss or confused by smallprint mail solicitations? Stephen Moyer is an absolute pro and de-mystifies what some may think of as a blackbox only understood by investment specialists, asset pirates, and/or bankruptcy lawyers.
Conversely, if you are a professional and seeking to augment your understanding, Moyer provides insightful commentary on areas like negotiation leverage points, key area to control, legal bounds of control, pre & post-bankruptcy valuation approaches, and comparisons to real deals done recently in the marketplace. Most of his examples are from 1998-2003, and he tries to use contemporary issues to highlight arguments. Unfortunately, you will not find the most recent Bankruptcy Code reforms which commenced Oct 17, 2005. For instance, he states on page 77 that management can "...extend the [bankruptcy] exclusivity period virtually indefinitely...", which today is essentially limited to 18 months. Although a shortcoming to the book, any professional investor would have access to materials to become up-to-date on the recent reforms.
Moyer's CV reads long: Stanford Law, Chicago MBA, CFA, CPA, and Drexel Lambert heritage. Obviously, he knows what he is talking about. His writing interests do seem to be lawyer-ly; for instance, he spends an inordinate amount of time explaining issues around confidentiality agreements and duties. But, I appreciated his clear and concise style and sentences. No arrogance in his style nor is he trying to sell his current firm.
Excellent book. Strongly recommend despite the price.
Amazon.com
If the prescriptions for getting rich that are outlined in books such as The Millionaire Next Door and Rich Dad Poor Dad are successful enough to make the books bestsellers, then one must ask, Why aren't there more millionaires? In Fooled by Randomness, Nassim Nicholas Taleb, a professional trader and mathematics professor, examines what randomness means in business and in life and why human beings are so prone to mistake dumb luck for consummate skill. This eccentric and highly personal exploration of the nature of randomness meanders from the court of Croesus and trading rooms in New York and London to Russian roulette, Monte Carlo engines, and the philosophy of Karl Popper. Part of what makes this book so good is Taleb's ability to make seemingly arcane mathematical concepts (at least to this reviewer) entirely relevant in evaluating and understanding everything from the stock market to the success of those millionaires cited in the aforementioned bestsellers. Here's an articulate, wise, and humorous meditation on the nature of success and failure that anyone who wants a little more of the former would do well to consider. Highly recommended. --Harry C. Edwards
Book Description
“[Taleb is] Wall Street’s principal dissident. . . . [Fooled By Randomness] is to conventional Wall Street wisdom approximately what Martin Luther’s ninety-nine theses were to the Catholic Church.”
–
Malcolm Gladwell, The New Yorker
Finally in paperback, the word-of-mouth sensation that will change the way you think about the markets and the world.This book is about luck: more precisely how we perceive luck in our personal and professional experiences.
Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill–the world of business–
Fooled by Randomness is an irreverent, iconoclastic, eye-opening, and endlessly entertaining exploration of one of the least understood forces in all of our lives.
Customer Reviews:
Not as good as the Black Swan.......2007-10-01
I read the Black Swan and I loved it. So, of course, I had to read this book too. It turned out to be a rehash of the same material, but not told with the same conviction. In the Black Swan he pulls no punches. Here he has not quite gotten all his material together and you can feel it. If I had not read the Black Swan I would have liked this book. But, since he wrote a better one, I would recommend the Black Swan and not this one.
A MUST read.......2007-09-29
A great book that everyone can read and understand. Wonderful insight into the ramdomness of life.
Fallacies of inductive reasoning.......2007-09-02
If you ever felt a little queasy about that article in the paper - the one that connected all the dots and claims to have explained yesterdays news - then this is a book you must read. Taleb covers a lot of ground, at times in seemingly sporadic jumps, but each chapter is a mini research library in itself. The reviews for this book span the whole gamut, and I will not try to add to the noise short of saying that if you are interested in probability, in how it affects our lives, and how it skews our perception of the world, then you should judge the book for yourself - I happened to have read it twice.
It's a book - breath deep.......2007-08-31
A good read and many valuable insights that will keep you thinking long after you've moved on.
Attacking this author is besides the point; frankly, why should anyone care if he is or isn't a arrogant, ivy league brat, a walking contradiction that doesn't appreciate the "businessman"? The book is either worth the read or it isn't. My opinion - it has something important to add and does so in a fun, refreshing style to boot.
Risk Management 404.......2007-08-31
Hard to rate this book too highly. It is not without flaws and even the author describes is as something along the lines of a self-indulgent and eccentric essay (my words). That is of nonetheless part of its charm. This is an unorthodox look at a very important topic for our world.
It would be a mistake to come to this book as your first introduction to risk management, life, philosophy, probability or derivatives trading. It covers all of those topics and much, much more but this book is not written as an introductory read. You need to have some life experience and at least a working knowledge of risk management (in whatever field of endeavour you pursue). The joy of this book is it's ability to stretch your mind with new ways of thinking.
Taleb's fundamental premise is that we underestimate the role of luck (or Lady Fortuna) in our lives and he argues compellingly to that end with a range of interesting examples. The survivorship bias of 'successful' people is well illustrated using a number of examples to show how (for example) derivatives traders start and fail on a regular basis, eventually leaving only the ones who have been continuously successful. That although skill and experience are important, many wealthy trader have basically thrown 'heads' 20 times in a row (ie. survived 20 years trading). We then back-test their methods to find the 'secret of their success' assuming that it is more than luck which of course it usually (but not always is) but that we for the most part a) underestimate the role of luck and b) assume that what has worked in the past will continue to work in the future. He uses the black swan example (all swans were white until the discovery of black swans in Australia in the 17th century) to illustrate the point that even if the processes that trader has used in the past worked out, we need to keep challenging our thinking and continually learn anew. In a complementary but very different vein, have a look at 'Managing the Unexpected' by Karl Weick and Kathleen Sutcliffe. They give new meaning to the concept of mindfulness and how 'high reliability organisations' such as nuclear aircraft carriers use a 'Pre-occupation with Failure' to sustain mindfulness and avoid Black Swans.
Some reviewers seem to have found Taleb's style challenging (and yes he can be sarcastic) but overall I loved it and found it a compelling read. I have a Masters in Risk Management, trade options, help clients with risk management and international security solutions and am a better practitioner now for having read this shotgun blast of scattered but linked ideas. I thoroughly enjoyed the places that it took and continues to take my thinking and am just grateful that he took the time to share his thought with the rest of us.
Mandatory reading for anyone who manages risk (which is after all just about everyone). When you think you understand something about risk management, then it is time to read this.
Book Description
The best book on investing ever written, this deluxe hardcover re–issue of the 1949 classic work offers Graham's sound and safe principles for investing – principles that have worked for more than the half century since it was first published. Beautifully packaged, this essential work will be a must–have for fans and novices alike. It also features a new Foreword by mutual fund legend, John Bogle.
The classic bestseller by Benjamin Graham, The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide. Since its original publication in 1949, Benjamin Graham's book has remained the most respected guide to investing, due to his timeless philosophy of "value investing", which helps protect investors against the areas of possible substantial error and teaches them to develop long–term strategies with which they will be comfortable down the road.
Over the years, market developments have borne out the wisdom of Graham's basic policies, and in today's volatile market, The Intelligent Investor is the most important book you will ever read on making the right decisions to protect your investments and make them a success.
This deluxe hardcover re–issue of the original 1949 text by Graham – what Warren Buffett deems to be pure, unadulterated Graham – will feature a beautiful package that will make it an instant must–have for the many fans of Graham, and collectors everywhere, and is further enhanced by the inclusion of a new Foreword from mutual fund legend, creator of the first S&P500 index fund, and founder of The Vanguard Group, John Bogle.
Customer Reviews:
This is what I was missing for Investing in the stock market.......2007-04-12
During the last five years I entered the stock market and took a couple of seminars on investing in stocks, the seminars were valuable introductions to the market, after reading the book I discovered that what I had learned in those seminars was to behave like an speculator rather than a true investor. After many costly mistakes I know why I needed to read the book. The cases presented in the book of companies that in many cases no longer exist do not harm the wisdom and clarity of the basics needed to become a true investor. I recommend the book to every person who wants to enter the market. It is actually a must read beforehand. Now I know what Warren Buffet means when stating "this is the best book on investing ever written". Hope you will find it as valuable.
Carlos Irving Rojas - Mexico City
It may not be the BIBLE of Investing - But it certainly is the NEW TESTAMENT.......2007-03-10
What are you waiting for, buy the book and rock your world. I am reminded of the old joke we use to tell in Wall Street when I was with Lehman Brothers back in the 1970's. It's the story about the guy who is given permission to remove as much gold as he can from Fort Knox but he only has a morning, and must work alone. He's given a truck and a wagon to haul the gold with. He gets in the truck and heads the wrong way. "Where are you going, you are going the wrong way, you only have a morning to work with, and the clock has started." His answer is classic, "I am going to get breakfast first."
The point is very simple. People are reading Wall Street Journals, getting MBA's, and watching the talking heads on television. I've got portfolio managers who would kill for an edge, and every one of them, all of them are missing the point. It's all there, all the knowledge, all the wisdom you need to become a MASTER in the financial markets. You simply have to know what to read, and you begin by reading THE INTELLIGENT INVESTOR.
At Harvard we use to say they divided the building up into two lecture halls tonight. The door at the first hall has a sign that says LECTURE ON GOD, on it. The door of the second lecture hall has a sign that says GOD on it. Everybody wanted to go to the lecture. Listen up folks, this book THE INTELLIGENT INVESTOR, it's the real thing. This is not Madison Avenue sitting down with a author that they pulled out of Hollywood, and said let's put some interesting witticisms into a book on investing, dress it up, market it smart, and make a couple of bucks.
This is a book by a man with an Einstein type IQ, whose natural abilities were in the financial arena, who has the uncanny skill sets to explain himself in beautiful prose that just about all the rest of us can understand. If you want to be in the stock market, and you haven't read Benjamin Graham, it's like being in a gunfight in the old west, and not having a gun. You got to do the basics, and very few people do.
Wasn't it Woody Allen who said, "80% of making it is just showing up?" If you want to be in the market, and outperform everybody else wanting the same thing, than you can't do the same things they do, or you will get the same results, and that means mediocrity. You are in the race for Alpha, the extraordinary return. To win the race, you need an EDGE. Now how many people do you think are doing the basics? The answer is about as close to zero as you can get.
Investors, just like people want instant gratification with a minimum of effort, energy, and pain, and that's not how smart, astute investing works. You need to read books like this one not once, but over and over again, until it becomes part of you, until emotionally its wisdom becomes imprinted in your brain. You then need to start implementing it. See what kinds of results you are getting, and then make the adjustments necessary to make its wisdom YOUR OWN.
In other words, you need to OWN THE KNOWLEDGTE THAT'S IN THIS BOOK. Can it be done? Yes, but not easily. Benjamin Graham spent a lifetime figuring this stuff out. He didn't hit the ski slopes at Sun Valley. He wasn't sitting by the pool at Bungalow 5, at the Beverly Hills Hotel. He was grinding out the "Margin of Safety" concept, and testing it against the real world, did it work, and did it falter? Was it a 100 percent reliable.
I have heard Warren Buffett his most famous, but not only successful disciple tell the story of how the students in Graham's class room at Columbia would challenge the old man. Graham would used those challenges to make his thinking better, sharper, more real, and in so doing he became a better investor.
You want to know about Mr. Market, and why just about every investor ignores this theory, which is the equivalent of the Quantum Theory in Physics. You need to read the book. In Chapter 11, he teaches you how to value a business, his way. The teachers at Harvard, Wharton, Ross School, and others have nothing on Ben Graham. We are all students at his feet.
In my lifetime, I have worked with some of the smartest people on the planet. My direct mentor is the richest man on Wall Street, and I have known just about every major national and international investor worth his salt in the world in my generation. Every one of them could quote Benjamin Graham, meanwhile the want-to-bees, were out getting fitted for suits, after having lunch at the 21 Club.
Absorb some wisdom from someone who has been there. Read this book; learn about the "Circle of Competence", and the overwhelming importance of investor psychology. It is amazing that in this book several generations old, Ben is dealing with the same issues confronting us today, director independence, broker conflicts, frequent trading and the lack of performance it creates, management teams out of control, and dealing in a self-serving manner.
Each edition of this book is unique in its own way, with different world-class players commenting along side the text. I happen to like this edition because John Bogle (read his books also) is a man who I respect enormously who has impacted the investing world. The revised edition with Warren Buffett commenting is wonderful also. You simply can not go wrong touching anything that has been written by Benjamin Graham. Good luck.
Richard Stoyeck
[...]
Value investing primer.......2007-02-17
This was a pretty good book on value investing. The problem is that the book is 30 years old, and the examples are a bit dated. The thing is that if people find out that a type of investment strategy is profitable, more people invest in it, which makes it less profitable. This is why his examples perhaps do not still hold today - if people know about these pitfalls, presumably they are avoiding them. But I'm not sure if this is really true or not - sometimes people do not change, even in the face of overwhelming evidence.
The one thing to take away from this book is that when there is an optimistic spirit in the market, people get carried away, and vice versa. Over time, emotions will always remain as long as people are responsible for trading stocks.
Overall, it's a good intro to investing, but further research into modern statistics needs to follow.
The gold standard in investment titles.......2007-02-08
This classic book on investing belongs on the bookshelf of every investor. The principles that Benjamin Graham outlines are the very precepts that guided such great investors as Warren Buffett, and such mutual fund innovators as John Bogle, the noted Vanguard Group founder, who wrote this edition's foreword. First published in 1949, the text shows a few signs of age, most notably in its discussion of interest rates, investment vehicles such as savings bonds and other time-sensitive subjects. However, those are minor issues. When Benjamin Graham writes about categories of investors, approaches to security analysis, the proper disposition investors should have toward market moves, and other fundamental investment subjects, his advice is timeless. We highly recommend this seminal book.
A must read for Fundamental Investors.......2006-12-03
First, I just want to say that many of you might find this book boring to read. If that turn out to be the case, you can read the commentary (which uses more relevant and recent examples) for each chapter by Jason Zweig, which is worth the price of the book alone. I got tempted to read the commentary only but I forced myself to read the entire book and I'm glad I did it. Warren Buffett is right, this is the best book on investing ever written, by far. This is one of the reasons in my opinion why Warren himself never write an investment book (plus the fact that it is not easy to explain Warren's intelligent on a paper. Instead just learn from what he does).
Now about the content of this book, it tells you everything you need to know about the investing field (not only stocks, but business in general, bonds, macro economy to some extent, psychological factor of the market, strategy for defensive and speculative investors etc).
Secondly, Warren Buffett highly recommend this book and his favorites are chapter 20 (Margin of safety) and chapter 8 (Investor and market fulctuation). Margin of safety should be the central concept of your investment, and understanding how the market works (and the mood and inconsistencies of Mr Market) should be the second thing that you need to know before jumping into the market.
I also find the chapter 11 (security analysis for lay investor) very educating as it teaches us to value the future of a business (breaking down into 3 area:
1. Long term prospect
2. Quality and conduct of management
3. Financial strength and capital structure
Additionally the comparison of eight companies (chapter 18) very practical and eye opening. I won't spill the content right here but when I read them, it feels like common sense to me, but back (during the tech bubble) then I was involved in several similar stocks that I shouldn't have touched with a ten feet pole.
The bonus chapter "The Superinvestors of Graham-and-Doddsville" by Warren Buffett is a classic reading. This article shows how inefficient the market can be, and argue that most of the time the market is not efficient. I have become a believer that the market is not efficient (after many years believing that the market is very efficient as the business school has taught me)
This book also cover several useful metrics that we can use to value a company in addition to just looking at EPS or PE ratio, such as the ROIC (Return on Invested Capital) etc.
In general, Ben Graham focuses a bit more on capital preservation (shown by focusing on margin of safety, dividend policy, and stocks priced below its tangible book value strategy.) which I think are really important, but one need to understand that there's more to investment than just those things (such as long term groth/the business itself and management) which are also covered in book.
This book would not serve as your investing philosophy, but it should help you create your own investing philosophies. It will help you find what your strength (defensive or enterprising) is and find/form your circle of competence. And as a minimum, this book will increase your confident when dealing with the stock market.
Last but not least, also read "Common Stocks and Uncommon Profits" by Philip A. Fisher and "One up on Wall Street" by Peter Lynch to complement this book.
Happy Investing!
Book Description
Come behind closed doors and see real trades made by real traders.
Dr. Alexander Elder leads you into 16 trading rooms where you meet traders who open up their diaries and show you their trades. Some of them manage money, others trade for themselves; some trade for a living, others are on the semi-professional level. All are totally serious and honest in sharing their trades with those who would like to learn. You will meet American and international traders who trade stocks, futures, and options using a variety of methods. All are normally very private, but now, thanks to their relationships with Dr. Elder, you can see exactly how these traders decide to enter and exit trades. Each chapter illustrates an entry and an exit for two trades, with comments by Dr. Elder. With this book as your guide, you can get closer to mastering the key themes of trading—psychology, tactics, risk control, record keeping, and the decision-making process.
The companion Study Guide is filled with striking insights and practical advice allowing you to test your knowledge and reinforce the principles outlined in
Entries & Exits.
Customer Reviews:
Very Enjoyable Read.......2007-09-30
A good follow-on read to his Come Into my Trading Room.
It's interesting to hear about the various everyday people who manage to trade for a living. Good detailed trade examples which give up more on re-reading.
Disappointing.......2007-07-01
I have read Elder's other books and was looking forward to reading this one. Unfortunately, Entries and Exits, does not rise to the standards Elder set with his other books. I can honestly say, "read his first two books,but,skip this one" Sorry Dr. Elder.
an Unbelievably great book!.......2007-05-21
Received great education from Dr. Elder again! Unlike many other books on trading which are repetitive, every word of Dr. Elder's every book is valuable, not a single wasted or repetitive. They're all worth their every page, every paragraph and every word.
Highly recommended for those who are looking for trading methods.
Great insight!.......2007-05-19
Dr. Elder-
This morning I finished my second reading of Entries and Exits, and just wanted to thank you for your continued insight. I have been a long time follower of yours since 1994 when I came across Trading For A Living at the local Barnes and Noble. I was also one of the first to buy Come Into My Trading Room, as you wrote when you signed it. We also talked on the phone a couple times back in '94 when I was struggling getting started . My trading life has had ups and downs as I have traded successfully for 1-3 years at a time, and then had to return to the corporate world. I took the whole year of 2006 off from trading, but have returned this year with renewed determination.
My biggest revelation was the fact that when I started trading for a living in 1993, I started with the most difficult trading instruments, options. When that failed, I moved onto futures. This year for the first time, I decided just to see if could trade the least leveraged instruments, stocks. I have had a good run this year with stocks as it is easier to take losses where you should when they aren't $1500-$2500 as they were when I was trading the small NASDAQ.
Anyway, keep up the good writing, and I hope there is a sequel to Entries and Exits.
Excellent insight into a variety of trading styles........2007-05-12
Trading books tend to get boring at some point: psychology, technical analysis, money management, or methods. I had no problem reading this one through cover to cover. Anyone who has ever traded with their own money soon comes to realize the importance of these two points in any trade: when you pull the trigger to enter and when you pull the rip-cord to exit.
"Entries & Exits" will not give the details that new traders crave to develope their virtual-cash-cow trading machine, but it is the next best thing to a $6,000 to $20,000 mentorship available on the market today. The reader gets to look over the shoulder of 16 very different traders and not only see some of their "three Ms" (Mind. Money, Methods) but also get to see just whom they are competing against in the markets. Some of these traders you will probably not like because they seem to live in a different world than you. Others you will think could be your next best friend. All of them, however, could well be on the other side of the next trade you make. It's a good principle to know your competition.
This book could be your next best investment especially if you harbor any secret desires to trade fulltime.
Book Description
The timeless edition of Security Analysis that most closely reflects today's financial environment
Graham and Dodd's Security Analysis is hands-down the most influential investment book in history. The classic 1951 edition is the first edition of the bestselling investment bible that was written during a time of
economic stability and prosperity. It provides investors with techniques and strategies for profitable investing in an economic environment that most resembles today.
Security Analysis: The Classic 1951 Edition features a far more contemporary focus on the wisdom and legitimacy of common stocks for individual investors. This essential addition to any investment library features:
- Graham and Dodd's original words and insights, unvarnished and still compelling
- Timeless methods for measuring asset values and cash flows, still a centerpiece of value investing worldwide
- Income statements and balance sheets moved to the front of the book for ease of use
Customer Reviews:
this book and "the inteligent investor" is the bible of investment.......2007-09-16
a great book that shows you the fundamentals and practices of security analysis. if you want to learn about it, this is the book for you.
The Warren Buffet's master in depth analysis.......2007-08-31
Undispensable to understand the value investing with an historical prospective. An excellent complement to Ben Graham "intelligent investor"
The Ever-Relevant Classic.......2007-08-27
Getting into investing is tough. Ben Graham's timeless wisdom is the only worthwhile advice an individual would need for making this journey a 'safe' and profitable venture. That said, this book, in my opinion, appeals to a wide audience. Yes, it can be extremely complicated at times, but my point is, if you understand just a fraction (not of just one topic, but a lil bit of everything) of what he is trying to say, you will be better at managing/growing your hard-earned money. Like any other book, the better 'tuned' a reader is to Ben Graham's words, the richer the rewards he/she will reap. Needless to say, most of us are not perfectly tuned in, like Warren Buffett or Micahel Price were/are. But, then again, while making 100s, 1000s, or millions is not as good as making billions, it certainly is satisfactory.
Furthermore, I like this book from a theoretical and practical standpoint. Many other books/textbooks on finance and accounting are just miserable in the sense that the authors 'armed' with PhDs go on and on and on with theory about the items in a balance sheet or about EBITDA valuation without bringing them into advice a practioner can use simply because they do not deeply know/understand the purpose or steps involved with valuation techniques. And, generally, they convince you that they do know their stuff by using a MBA/PhD/CPA/CFA to excessively focus on one area without being able to effectively integrate with other areas in finance, thereby defeating the purpose of investment theory. However, there are exceptions to this statement.
Security analysis? Financial analysis? If you have an interest in either, then consider reading this invaluable long book!.......2007-08-12
What a great book! It was long, long-winded at times, and full of small print and not too much white on the pages, but full of content on the subject at hand: security analysis. I just finished reading the 3rd edition (2004). The original edition was published over 50 years ago and for the most part it is just as applicable today as it was way back in 1951.
The intended audience for this book is obviously people who do security analysis for a living. They might be people working on Wall Street, analyst firms, investment firms, hedge funds, mutual funds, or merger/acquisition departments. But I don't fit into any of those categories.
I'm a SCORE volunteer counselor who coaches small business owners and wanta-be entrepreneurs on starting and improving businesses. The principles included in this book are things my clients need to understand and be adept at using. Could the book have been titled Financial Analysis instead? Maybe. I was most interested in reading the following sections:
>>Analysis of Financial Statements
>>The Valuation of Common Stock
>>Stockholders and Management
>>Security Analysis in Action
I highly recommend this book for anyone who is interested in better understanding how to evaluate companies and what they are really worth so they can be made better and sold for more. It is not light reading, and if you are used to zipping through a book in a few hours like I am, then skip this one.
I didn't see any discussion on cash flow as something to consider when evaluating a company for financial soundness. And I think it should have been included. Also, I didn't really like having to read about railroad and public utility companies. Clearly there could have been some more interesting companies to talk about when making points. All in all, there's lots of wisdom presented in this huge tome and it's invaluable. 5 stars!
One of the best investment books ever written.......2007-05-07
Ben Graham is the Father of Security Analysis. Period. With over 85% of fund managers unable to outperform the indices over the past 20 years, his wisdom is timeless. While his influence as Warren Buffett's mentor is well documented, I suggest you read an article from 1984 by Buffett, titled "The Superinvestors of Graham-and-Doddsville", published in Hermes, The Columbia Business School Magazine. Buffett lays out pretty clearly how Graham directly influenced a number of other investors- it's basically the intellectual lineage that started with Graham's teachings. Their collective portfolio performances probably at least doubled that of the S
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